Energy efficiency and renewable energy options for riskmanagement and insurance loss reduction: An inventory oftechnologies, research capabilities, and research facilities at theU. S. Department of Energy's National Laboratories
The promotion of technologies and services for insurance loss reduction and loss prevention is as old as the fields of insurance and risk management. This report addresses a new category of risk management opportunity involving technologies and procedures that use energy more efficiently or supply renewable energy. While the economic benefits of these measures are of interest to energy consumers seeking to reduce their energy expenditures, we have found that they also offer a novel and largely untapped pathway for achieving traditional risk management objectives. Most of the technologies described in this report were supported by government- sponsored RD D programs over many years of effort. These technologies have many benefits, including insurance loss reduction and prevention. The insurance and risk management communities could take advantage of these technologies, either independently or in cost-sharing partnerships with existing R D programs. In this report, we present a compilation of energy-efficiency and renewable energy projects (e.g., energy-efficient halogen torchiere replacements) and techniques (e.g., infrared cameras to detect fire hazards) that are currently being investigated at the U.S. Department of Energy's national laboratories and which the insurance and risk management communities could encourage their customers to use to address their short-term and long-term needs. Once the loss-prevention benefits of these technologies and techniques (many of which are not yet available in the marketplace) are sufficiently demonstrated, insurers can promote their use through informational programs and perhaps financial incentives (e.g., risk-adjusted insurance premium schemes) through the insurance regulatory and rate-making processes. We identified 78 technologies and techniques being investigated by nine national laboratories which can help to reduce insurance losses and manage risks, especially those associated with power failures, fire and wind damage, and home or workplace indoor air quality hazards. All help to reduce insurance losses in one or more of the following categories: boiler and machinery, builder's risk, business interruption, commercial property insurance, completed operations liability, comprehensive general liability, contractors liability, environmental liability, product liability, professional liability, service interruption, workers' compensation, health/life insurance, and homeowners insurance. We identify examples of existing collaborations between the national laboratories and the insurance industry, and indicate research activities being conducted by the insurance and risk management communities that would benefit from the work of the national laboratories. We also describe some of the risk factors associated with energy-efficient and renewable energy technologies. For the future, significant progress could be made through interdisciplinary collaborative applied research (i.e., integrating the actuarial sciences with the physical or engineering sciences). This collaboration could be sponsored jointly by the U.S. Department of Energy and the insurance and risk management communities (as well as working through the insurance regulatory and rate-making processes).
- Research Organization:
- Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
- Sponsoring Organization:
- USDOE Office of Energy Efficiency and Renewable Energy (EERE)
- DOE Contract Number:
- AC03-76SF00098
- OSTI ID:
- 6398391
- Report Number(s):
- LBNL-41432; ON: DE00006396
- Country of Publication:
- United States
- Language:
- English
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